Lukoil Deal Delayed as US Issues New Sanctions License Extension

The United States has extended the deadline for potential buyers to negotiate the purchase of Lukoil’s international assets, granting a new authorization that pushes the timeframe to 1 May. The decision, reported by Reuters and based on documents from the US Treasury Department’s Office of Foreign Assets Control (OFAC), marks the fourth extension of the process.

The updated General License 131D permits interested parties to continue negotiations with Lukoil, including legal, financial and operational due diligence, as well as the drafting of agreements. However, any eventual deal must still receive separate approval from US authorities, meaning no transaction is automatically finalized under the license.

According to the OFAC framework, the transaction must ensure a complete separation between Lukoil International GmbH and its Russian parent company. It also stipulates that any funds owed to Lukoil remain frozen under US jurisdiction until sanctions conditions are lifted, while preventing the Russian energy giant from gaining any financial windfall from the sale.

The sanctions regime targeting Lukoil was introduced on 22 October 2025 as part of wider US measures aimed at the Russian energy sector, with the stated objective of limiting Moscow’s revenues linked to its ongoing war efforts. Since then, the divestment process involving its international holdings has been placed under strict regulatory oversight.

Reuters reports that this is the fourth time the deadline has been extended. The total value of the assets under consideration is estimated at around USD 22 billion. Among the parties reportedly showing interest are US private equity group Carlyle, energy giants ExxonMobil and Chevron, Abu Dhabi-based International Holding Company, and Austrian investor Bernd Bergmair.

Each potential transaction remains subject to individual OFAC approval, meaning that even shortlisted buyers must undergo separate review before any acquisition can proceed. The structure effectively allows negotiations to continue while maintaining regulatory control over the final outcome.

Earlier reporting by Reuters, citing unnamed sources, suggested that the prolonged sales process has also been viewed as part of broader US leverage in its approach to negotiations involving Russia and Ukraine, although this interpretation was not included in official Treasury statements.

In a wider context, the handling of Lukoil’s international assets reflects ongoing efforts by Western governments to restrict Russian energy revenues while managing the practical implications of global asset transfers. The repeated extensions indicate both the complexity of unwinding large multinational holdings and the geopolitical sensitivity surrounding any potential sale.